Do I need to submit 1099-MISC that was paid directly to student loan servicer for loan forgiveness, it was not paid to me.

Yes - Include the 1099-MISC as income in your tax return.  It is considered a cancellation of debt, which the IRS considers taxable income to the borrower.

There are two exceptions to this:

1. Amounts from student loans discharged on the account of death or total and permanent disability of the student;
2. If the school went out of business and closed.

To include the cancellation of debt income in your return, please follow these steps:

1. On the Wages & Income screen, scroll down to the Other Common Income section.
2. Click the Start/Edit box next to Form 1099-MISC.
3. Enter the information from the 1099-MISC on the screen, Let's get the info from your 1099-MISC.
4. Enter the reason on the next screen.
5. On the screen, Does one of these uncommon situations apply, mark the radio button None of these apply and click Continue.
6. On the next screen, answer No it didn't involve work like your main job.
7. On the How often... screen, mark the box that you got it in 2020.
8. Did it involve an intent to earn money?  No

The above questions are asked in order to determine whether a Schedule C is necessary.  It is not in your case.

For more information, see this article on the IRS website:  Topic No. 431 Canceled Debt – Is It Taxable or Not?